Kaynes Technology India Limited (KTIL) IPO opens for subscription on 10th November and closes on 14th November. Let us look at KTIL's IPO details:

Kaynes Technology India Limited IPO Details

• Price band: Rs. 559 - Rs. 587
• Issue Size: Rs. 857.82 crore (Fresh Issue of Rs. 530 crore, remaining OFS)
• Reservation: QIB 50%, Retail - 35%, NII 15%
• Minimum Investment: Investors need to make a minimum investment of Rs. 14,675
• Bid lot: Investors can bid for 25 shares and in multiples of 25 shares

What does Kaynes Technology India do?

KTIL is a leading end-to-end and IoT solution-enabled integrated electronics manufacturing company. It provides conceptual design, process engineering, integrated manufacturing, and life-cycle support for players in automotive, industrial, outer space, aerospace, medical, nuclear, railways, and other segments. They have 8 strategically located manufacturing facilities in different states of India.

What is the industry outlook in which Kaynes Technology India operates?

The demand for IoT-based devices is estimated to grow at a CAGR of 15.0% till 2025. Electronics production in India was at $67 billion in FY21 and will grow at a CAGR of 32.3% to reach $272 billion by FY26. Companies in this segment are expected to benefit from the growth.

Who are the listed peers of Kaynes Technology India?

KTIL has three listed peers - Dixon Technologies Ltd, Syrma SGS Technology Ltd, and Amber Enterprises India Ltd. It also faces competition from unlisted companies like Elin Electronics Ltd, SFO Technologies Pvt Ltd, Avalon Technologies Pvt Ltd, etc. KTIL operates in many segments, and its listed peers do not operate in all segments.

Kaynes Technology India Limited: Financials

• For FY20, FY21, and FY22, KTIL reported revenue from operations as Rs. 368.24 crore, Rs. 420.63 crore, and Rs. 706.25 crore. The revenue has grown at a CAGR of 38.4%.
• The EBITDA reported by Kaynes for FY20, FY21, and FY22 was Rs. 41.33 crore, Rs. 40.89 crore, and Rs. 93.67 crore, respectively. The EBITDA margin increased from 11.28% in FY20 to 59.03% in FY22.
• The company reported a profit of Rs. 9.36 crore, Rs. 9.73 crore, and Rs. 41.68 crore for FY20, FY21, and FY22, respectively.
• The Debt to Equity ratio was 0.84 in FY22. It has come down from FY20.
• The average EPS and RoNW were 4.8 and 12.3%, respectively, for the last three financial years.

What are Kaynes Technology India's strengths?

• KTIL has highlighted its strengths in the RHP. Below are some of the listed strengths:
• They are an end-to-end and IoT solutions-enabled integrated electronics manufacturing player, having capabilities across the spectrum of ESDM services.
• The company has a wide-ranging product portfolio having applications across industry verticals such as automotive, aerospace and defence, telecom, space, medical, IoT, and industrial.
• They have long-standing relationships with a marquee customer base - they have served 229 customers in 21 countries across three continents (June 2022).
• KTIL has a strong supply chain and sourcing network because they have a long-term relationship with vendors within India and outside India.

What are Kaynes Technology India's growth and expansion plans?

• They plan to deploy a part of the net proceeds to fund capital expenditure toward upgrading and expanding existing facilities.
• The company will leverage its research and development capabilities to continue to diversify its product portfolio and provide value-added services.
• It plans to undertake vertical-focused expansion to expand its business using different strategies for different business verticals.
• KTIL will expand manufacturing capacity at its existing facilities and set up additional strategically located facilities.

What are the risks associated with Kaynes Technology India's business?

• In RHP, KTIL has mentioned some risks associated with its business. Some risks are listed below:
• KTIL's top 10 customers contribute a significant percentage to their revenue - 51.02% for FY22. The loss of one or more top 10 customers will have a significant impact on its financials.
• They operate in a highly competitive industry, and it may create pressures on pricing and market share.
• KTIL may undertake investments, acquisitions, joint ventures, or other strategic alliances, which may have a material adverse effect on the company's ability to manage its business, and such undertakings may be unsuccessful.

You can invest in Kaynes Technology India IPO on the Cherry app.